Regulators OK settlement to keep Charter Communications in New York

A year ago this month, the PSC voted to kick Charter out of the state after alleging the company had violated the terms of its 2016 acquisition of Time Warner Cable.

A year ago this month, the PSC voted to kick Charter out of the state after alleging the company had violated the terms of its 2016 acquisition of Time Warner Cable.

Photo: Jeff Roberson

Photo: Jeff Roberson

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A year ago this month, the PSC voted to kick Charter out of the state after alleging the company had violated the terms of its 2016 acquisition of Time Warner Cable.

A year ago this month, the PSC voted to kick Charter out of the state after alleging the company had violated the terms of its 2016 acquisition of Time Warner Cable.

Photo: Jeff Roberson

Regulators OK settlement to keep Charter Communications in New York

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ALBANY — After nearly a year of uncertainty and negotiations, state utility regulators have approved a $12 million settlement with Charter Communications that will allow the cable TV company to remain in New York.

The state Public Service Commission voted 3-1 in favor of the settlement, with Diane Burman dissenting.

"We're pleased the PSC has approved the agreement, and we look forward to continuing to serve our customers and expanding the availability of high-speed broadband in New York State," Andrew Russell, Charter spokesman said. "We thank the PSC, Chairman Rhodes, the commissioners and staff for working with us throughout this process."

A year ago this month, the PSC voted to kick Charter out of the state after alleging the company had violated the terms of its 2016 acquisition of Time Warner Cable.

Burman said she abstained Thursday because she she objected to what she called the "problem process" that led to the vote. The special session called last July to vote to kick Charter out of the state was held when she was on vacation, which she said never should have happened.

Under the PSC's approval of the original deal, Charter, which operates the Spectrum TV and internet network, had to expand its footprint in the state to 145,000 households and businesses that lacked high-speed internet access.

The unprecedented vote last summer, which rescinded the PSC's approval of the Time Warner deal, forced Charter and staff at the PSC to resolve the expansion issue, which was mostly over where Charter was allowed to expand.

The settlement, which will provide millions of dollars in new funding to subsidize other companies to expand high-speed internet in rural areas, now excludes Charter from counting new addresses in the New York City area where the PSC says high-speed internet is already plentiful.

The PSC's newest commissioner, Tracey Edwards, the former president of Verizon's northeast operations who was appointed only last month, voted to approve the settlement along with PSC Chair John Rhodes and fellow commissioner James Alesi.

"The upstate folks need to have their broadband, so I'm all in," Edwards said before casting her vote.

Before any discussion was held on the settlement, which staff at the PSC had started negotiating almost immediately after last year's vote to kick Charter out of the state, Rhodes said he regretted that last year's vote didn't include Burman.

"I do recognize that a 'sorry' is offered, and I accept it," Burman said.

The $12 million that Charter is putting in escrow under the settlement will be used to provide money for both Charter and other companies to expand high-speed internet service to underserved areas of the state beyond the 145,000 new addresses that Charter is required to reach. To date, Charter has reached 65,000 new homes and businesses and has until September of 2021 to complete the expansion.

Staff at the PSC also contend that Charter will end up spending $600 million on the buildout - double what the cost would have been before the settlememt.